Year-End Tax Planning Tips from Gleason Tax Advisory

As the year draws to a close, it’s the perfect time to review your finances and take advantage of opportunities that could positively impact your 2025 tax return. Here are fifteen tax-saving ideas worth considering before December 31st:

🧾 Income, Withholding & Records

1. Estimate your tax liability and make any necessary estimated tax payments to avoid surprises at filing time.
2. Review your W-2 withholdings and adjust with your employer to align with your expected income and deductions for the new year.
3. Create a list of expected tax forms such as W-2s, 1099s, and investment statements to ensure nothing is missed.
4. Begin organizing your tax records early—receipts, mileage logs, and charitable donation confirmations are easiest to handle before the rush.

💰 Investments & Retirement

1. Review your investment portfolio for opportunities to realize gains or losses strategically.
2. Use your annual $3,000 net capital loss limit to offset ordinary income if appropriate.
3. Consider donating appreciated stock held for more than one year to maximize tax benefits while supporting a cause.
4. Review retirement accounts for required minimum distributions (RMDs) to avoid penalties.
5. Fully fund your retirement accounts such as IRAs or 401(k)s before the deadline.
6. Explore retirement plan rollover options—converting to a Roth IRA may be beneficial in certain tax situations.

🎁 Gifting & Family Considerations

1. Review the annual gift tax exclusion—up to $19,000 per person for 2025—to transfer wealth tax-free.
2. Maximize the kiddie tax threshold rules ($1,350 of unearned income taxed at your child’s lower rate).
3. Identify any household employees (such as nannies or caregivers) and confirm payroll tax compliance.

❤️ Charitable & Health-Related Strategies

1. Make last-minute charitable donations and confirm your itemized deduction limits to ensure they qualify.
2. Review your medical and dependent care flexible spending accounts (FSAs) to use remaining balances before they expire.

Should you have any questions about these strategies, reach out to Gleason Tax Advisory before taking action. Proper documentation and timing are key to maximizing your tax savings.